S. Korea issues cautious statement on cryptocurrency market shutdown

SEOUL, Jan. 15 (Aju News) -- South Korea vowed Monday to keep domestic cryptocurrency exchanges open for a while as a proposed ban on trading triggered a strong backlash from investors, confusion, panic selling and widespread debate.

The shutdown mentioned by Justice Minister Park Sang-ki last week was "one of the measures" aimed at curbing speculation that requires full intra-government consultations and coordination, the government said in a statement issued by the Office for Government Policy Coordination.

Park said the government is working on legislation to close all virtual currency exchanges, leading to a sharp fall in cryptocurrency prices. The window for public petitions at South Korea's official presidential website was flooded with thousands of appeals related to cryptocurrency trading.

On Monday, the government moved to ease widespread public jitters, saying there has been no final decision to shut down cryptocurrency exchanges. However, it vowed to go ahead with a strong crackdown on "excessive speculation and illegal acts".

"We will deal sternly with illegal acts such as price manipulation, money laundering and tax evasion through a joint investigation of prosecutors, police and financial authorities," the statement read.

A survey of 504 people, published Monday by Realmeter, a Seoul-based pollster, showed that 42.6 percent supported government regulations and the shutdown of cryptocurrency exchanges, while 12.1 percent opposed any regulations. Some 35.6 percent called for regulated trading.

Meanwhile, a petition, posted on December 28 at the presidential website, to oppose regulations was endorsed by about 187,000 people.